John Johnson is saving for his son's college tuition. His son is currently 11 years old and will begin college in seven years. John has an index fund investment worth $5,180 that is earning 9.5 percent annually. Total expenses at the University of Maryland, where his son says he plans to go, currently total $14,200 per year, but are expected to grow at roughly 6 percent each year. John plans to invest in a mutual fund that will earn 11 percent annually to make up the difference between the college expenses and his current savings. In total, John will make seven equal investments with the first starting today and the last being made a year before his son begins college. Required:
What will be the present value of the four years of college expenses at the time that John's son starts college?

German brothels recently began offering a monthly subscription service for multiple purchasers. if you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? suppose a particular patron at a german brothel has the following willingness-to-pay schedule for services at the brothel, per session. session willingness to pay 1st $84 2nd $72 3rd $60 4th $48 5th $36 6th $24 suppose this consumer would not demand any more sessions, even for free. also assume that the marginal cost to the brothel, per session, is constant at $12. at a price of $78.00 per session, the number of sessions demanded by this consumer would be . at this price and quantity, consumer surplus is $ and producer surplus is $ . suppose the brothel has devised a new pricing scheme for consumers who demand more than 1 session. this pricing scheme is a subscription service, whereby consumers can pay a flat fee of $259.20 and can have up to 6 sessions total. using this subscription pricing model, this consumer would demand sessions. under this scenario, consumer surplus is $ and producer surplus is $ . (hint: for consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)